How can I overcome my credit failures with specific banks and get them to issue me cards again?

Recent ActionsI just applied for a card with Discover and was declined for the following reason:

STATUS OF EXISTING / PRIOR DISCOVER CARD ACCOUNT

A similar thing happened to me awhile back when applying for a card with Citi.

HistorySix or so years ago, I had several credit cards (with reasonable but not especially high credit limits: 5500, 3500, 2250, 1600). And for a time things were good.

Lacking proper financial planning and being underemployed, I soon found myself underwater. About four years ago, I had reached the high-water mark of my insolvency. All cards were closed off or settled in one bad way or another (prior to 01/2012, 02/2011, 05/2011, 02/2011).

Current StatusFour years later, I have a high-paying job and my credit score has risen dramatically. I have been approved for several nice cards with good credit limits:

As you can imagine, I l have been scrupulous about paying all these off in full every month, occasionally multiple times to be sure to stay under %30 utilization.

My impression, having recently been approved for a second card from AmEx (HHonors), is that I have a high enough credit score and sufficient income to be approved for an average to above average credit card. With banks which didn't have to close off my debt four years ago.

What can I do to repair my standing with the banks which closed off my debt four years ago?

If there is nothing that I can do to repair my standing with them, will that standing return to neutral once seven years since the closures happened has passed?

onechannel wrote:If there is nothing that I can do to repair my standing with them, will that standing return to neutral once seven years since the closures happened has passed?

That's exactly what I was going to recommend: time. If you still owe anything on any of the accounts still held by the creditors I'd recommend paying in full - but it may be too late if they've been sold off to third-party collection agencies. Short of making sure to pay off any debts you have remaining I think your best bet is to just wait and give it time.

One other option you might explore is to send them "goodwill letters." I've never done one, but you should be able to Google about them if you're interested. As I understand it the letter basically asks them to remove the derogatory information - it may or may not works, and usually depends on whether or not the debt is paid and other circumstances, as well as just the particular creditor's willingness to do it.

Honestly though, if everything's now paid off I'd just sit tight for several years. Take the magic 8-ball approach and ask again later At least it sounds like you've already got pretty good other credit options.

You need to be very careful bringing up old debts. It can sometimes restart the 7 year timer on them falling off your report. There is no hard and fast rule to this. We just hear stories about how doing the right thing can sometimes hurt you more.

A goodwill letter is not likely to do much for a charge off or BK. They normally will only work on lates or closed accounts. I think if you have burned a lender like Discover you are pretty much out of luck for at least 7 years. Some lenders will never forgive you.

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